JPMorgan, Nacha to share data via blockchain

Dive Brief:

JPMorgan Chase and Nacha, the organization overseeing the ACH payment network, are partnering to integrate Nacha’s peer-to-peer payment information network within the bank’s blockchain-based data sharing network, Nacha said last week.
Through the integration, financial firms using JPMorgan’s system can verify U.S. accountholders’ information in real time using multiple trusted sources within Nacha’s network, the organization said in a Feb. 5 press release.
By integrating Nacha’s Phixius network with JPMorgan’s Kinexys Liink system, users can reduce payment errors, improve operational efficiency in international payments and mitigate fraud risk, per the press release.

Dive Insight:

Through its Kinexys Liink system, JPMorgan aims to facilitate the simple, secure exchange of payment information while upholding “sovereignty, security, and privacy,” per the press release.

The tool resides within the bank’s payments arm and blockchain business unit, where the company strives to modernize how information, money and other assets move globally, the release said.

“Phixius’ live integration with Kinexys Liink provides a unique multi-responder model that delivers clear value to data requesters,” Rob Unger, Nacha’s managing director of ACH Network development, said in the press release. “This integration reflects a shared commitment to providing clients with secure, efficient solutions that address the growing need for accurate account validation.”

As JPMorgan and Nacha expand their payment capabilities, each has seen interest in their respective peer-to-peer payment platforms grow.

Last year, peer-to-peer payment volume rose about 20% over 2024 on Nacha’s ACH network, to 469.7 million payments, according to Nacha data. The value of the payments was $776 billion.

On Wednesday, Zelle said its payment volume rose 20% last year, with $1.2 trillion sent using the network, according to a press release from Early Warning Services, Zelle’s parent company. JPMorgan Chase, Wells Fargo, Bank of America and four other banks own EWS.